Lib Dems back plans for new annual property tax on rich

The Liberal Democrats are backing plans for a new annual property tax that would cost homeowners with high-value homes thousands of pounds a year.

According to a report in the Telegraph, some Lib Dems are pushing for the annual charge to be levied at up to 1.5 per cent of a property’s value. Others believe the tax should be based on a site’s rental value, according to the report.

The report states Nick Clegg and business secretary Vince Cable are supportive of the idea. The tax is being promoted by a Lib Dem pressure group called Action for Land Taxation and Economic Reform, of which Clegg and Cable are vice presidents.

A Lib Dems source told the Telegraph: “A land value tax is ultimately where many in our party would like to go – particularly as it as a tax on wealth, not income. Will it be Government policy? We will have to wait and see – we are in a Coalition. But there is a good chance it will become party policy. It is the natural successor to a Mansion Tax.”

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The State Bank of India is expanding its UK residential mortgage range an additional buy-to-let tracker product. The SBoI has now confirmed that it will be targeting the buy-to-let sector and offering up to 70 per cent LTV on a repayment basis or 65 per cent on interest only. The banks is reportedly most interested […]

Halifax Intermediaries is offering borrowers taking out selected NewBuy, new build and shared equity products £500 towards the cost of moving home on completion of a property purchase. The offer is available across all of the lender’s homebuyers two-year fixed affordable housing range and a number of semi-exclusive new build and NewBuy products between 31 […]

What a difference six months makes. Speaking in September last year, we had warned of ‘excessive pessimism’ afflicting the market’s perception of India. Since then, responsible central bank policy from the Reserve Bank of India (RBI), alongside improving global growth, has meant that India’s macro environment is strengthening quickly. The current account deficit has shrunk, inflation is falling and the government has embarked on a heavy dose of much needed fiscal consolidation. As a result, the rupee has been one of the strongest global currencies this year while the market has touched all-time highs, rallying by more than 20 per cent (GBP) since September. This begs the question: are we now in a period of ‘irrational exuberance’? Not yet.

25th April 201410:19 am

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Land Tax is a tax shift NOT an additional tax. Land Tax will not raise more revenue, preventing cuts in spending or reduce the deficit. The Tax is to replace existing bad taxes, so we would look to abolish Council Tax, Business Rates, Stamp Duty land tax and reduce income tax.

Re “Look at what they did in Hong Kong” we are doing. Hong Kong raises between 30 and 40% of its revenue from land and property taxes and only 15% from income tax. We want to replicate the Hong Kong income tax where 60% of workers don’t pay income tax at all. The Lib Dems £10,000 Income Tax allowance, is just a first step, next is take to everyone out of tax that is on minimum wage, about £12,000.